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403b Rollover  Annuity

• In between jobs
• Laid off
• Terminated
• Moving to a new job

 If you are currently in between jobs, have been laid off,  terminated or moving to a new job the rollover must be  completed within 60 days after receiving the distribution. The recipient pays no immediate tax on the amount rolled over or on any earnings generated by that amount.

After leaving an employer, many people fail to make the necessary arrangements for their 403(b) funds before withdrawing their money, resulting in unnecessary penalties and an increase in taxes in the year their tax return is prepared.

If you're in-between jobs, laid off or terminated, or moving to a new job with no retirement plan you may want to rollover your existing 401k account funds into a 403(b) rollover annuity to avoid  taxes and penalties instead of taking the money out in cash.

Taking a distribution in cash from a 403(b) plan has very serious tax consequences. A withholding penalty of 20% for federal taxes is required by law to be withheld  from your distribution by your previous employer. In addition, if you are under the age of 59 1/2 you will be imposed a 10% penalty on the distribution.

There are numerous advantages to rolling over a 403(b) plan into a 403(b) rollover annuity. Among the many advantages are:

• Avoiding the mandatory 20% withholding for federal taxes
• Avoiding the 10% penalty imposed on the distribution if you are younger than 59 1/2.
• Safety...Principal is guaranteed with a 403(b) rollover annuity. Principal is not guaranteed with mutual funds, stocks or bonds.
• Investment choices...There are numerous investment choices to choose from including indices like the S&P500, NASAD100 and  DJIA to name a few. Fixed interest rate accounts are also available and are considerably  higher in 403(b) rollover annuities than in bank cds.
• Control.... You may change your investment options from time to time based upon changes in your investment goals or investment climate.
• Diversification.... You may decide to split up your account in between  the indices and the fixed interest account.
• Loans... with most of the 403(b) rollover annuity plans loans are permitted up to certain limits.

To learn more about 403(b) rollover annuities, their advantages and how you can avoid taxes and penalties on your rollover please let us know of we can help.